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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Posting Year End in BC
Small and medium business | Business Central, N...
Suggested Answer

Posting Year End in BC

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Posted on by Nihad92 74
Hi all
 
we migrated from Dynamics GP to BC last year
 
in GP we used to post Year End and brought forward balances it would move everything from Balance sheet nominals to retained earnings. 
 
But in BC looks like it brings forward balances from Income statement and posts it to retained earnings.  but this is messing up our historical reports if we look back, and comparing current year performance to last year.
 
Is there away around this?
 
Thanks
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    Jainam M. Kothari Profile Picture
    Jainam M. Kothari 15,639 Super User 2025 Season 2 on at
    Hello,
     
    To work around this, users can apply manual journal adjustments, use dimensions and date filters for clearer reporting, or build custom reports using tools like Power BI or Jet Reports to replicate GP-style year-end views.
  • Matteo Fiocco Profile Picture
    Matteo Fiocco 260 on at

    Hey Nihad,

    In GP, the year-end process actually zeros out the income statement accounts and books the net income directly to retained earnings on the last day of the year. That makes historical comparisons super clean — everything’s locked in nicely.

     

    BC works a bit differently. When you run the “Close Income Statement” process in BC, it posts on the first day of the new fiscal year, not the last day of the old one. So the income statement accounts still show their full balances when you look back, which can definitely throw off your reports if you’re expecting GP-style behavior.

     

    So what can you do?

     

    1.  

      Make sure you’re running the Close Income Statement process properly:

       

      • You choose the retained earnings account,


      • Enter the right closing date (e.g., 12/31/2024),


      • And it’ll create the journal in the background.



        •  

    2.  

      Your historical data isn’t actually wrong, it’s just a matter of how BC shows things. The key is to set up your Account Schedules or financial reports using proper date filters or fiscal year codes (FY[2024], FY[2025], etc.), so you’re comparing apples to apples.


    3.  

      If you really want GP-style “clear the P&L at year-end” behavior, you could technically do manual closing entries on 12/31 and reverse them on 1/1 — but honestly, that tends to create more issues than it solves in BC.

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 95,748 Super User 2025 Season 2 on at
    Hi, as far as I know, this is standard behavior. You can adjust the accounts and balances manually before posting, but this needs to be customized if you want it to be automatic.
    For example,
    And hope the following helps.
     
    Thanks.
    ZHU

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